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Milk prices beat the trend, unlikely to rise this summer in Indore

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Milk prices are unlikely to see any rise this summer due to surplus production in May month as against the usual seasonal drop that leads to price hike. Surplus milk output in Indore has touched close to 2 lakh litre per day in May. Loose milk is priced at Rs 58-Rs 60 per litre in Indore.

Milk prices beat the trend, unlikely to rise this summer

Daily milk collection in Indore in May has jumped to 13-13.5 lakh litre as against the estimated consumption of around 12 lakh litre, leaving a surplus of 1-1.5 lakh litre, according to Indore Dugdh Vikreta Sangh, an association of dairy owners and loose milk suppliers.

The association president Bharat Mathurawala said, “Milk prices are unlikely to jump this summer because of sufficient availability in the market. Collection is much more than the demand and farmers are getting at least Rs 6 per litre more. So looking at the current demand-supply situation, a price hike is unlikely.”

In March 2023, the association had hiked milk prices by Rs 3 per litre.
Milk collection in Indore in May is about a lakh liter higher than the corresponding period last year. Around two lakh litre of surplus milk is supplied out of station every day from Indore. Surplus milk from Indore is transported to Bhopal, Gwalior and Mumbai, according to the association.

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“Looking at the situation, we expect a comfortable demand-supply situation in May and June. If this continues, then there will be no price hike in milk in the summer months,” said Mathruawala.
Industry experts said easy availability of green grass for animals and purchase of new cattle by farmers in this season have led to a jump in milk production.

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